diff --git a/libs/WindowManager/Shell/src/com/android/wm/shell/pip/PipTaskOrganizer.java b/libs/WindowManager/Shell/src/com/android/wm/shell/pip/PipTaskOrganizer.java
index f0b2716f05d86..667d16636e6c1 100644
--- a/libs/WindowManager/Shell/src/com/android/wm/shell/pip/PipTaskOrganizer.java
+++ b/libs/WindowManager/Shell/src/com/android/wm/shell/pip/PipTaskOrganizer.java
@@ -882,7 +882,10 @@ public class PipTaskOrganizer implements ShellTaskOrganizer.TaskListener,
         if (animator == null || !animator.isRunning()
                 || animator.getTransitionDirection() != TRANSITION_DIRECTION_TO_PIP) {
             final boolean rotatingPip = mPipTransitionState.isInPip() && fromRotation;
-            if (rotatingPip && mWaitForFixedRotation && mHasFadeOut) {
+            if (rotatingPip && Transitions.ENABLE_SHELL_TRANSITIONS) {
+                // The animation and surface update will be handled by the shell transition handler.
+                mPipBoundsState.setBounds(destinationBoundsOut);
+            } else if (rotatingPip && mWaitForFixedRotation && mHasFadeOut) {
                 // The position will be used by fade-in animation when the fixed rotation is done.
                 mPipBoundsState.setBounds(destinationBoundsOut);
             } else if (rotatingPip) {
diff --git a/libs/WindowManager/Shell/src/com/android/wm/shell/pip/PipTransition.java b/libs/WindowManager/Shell/src/com/android/wm/shell/pip/PipTransition.java
index 0c443ce511166..0fcfced2dcfc6 100644
--- a/libs/WindowManager/Shell/src/com/android/wm/shell/pip/PipTransition.java
+++ b/libs/WindowManager/Shell/src/com/android/wm/shell/pip/PipTransition.java
@@ -19,6 +19,7 @@ package com.android.wm.shell.pip;
 import static android.app.WindowConfiguration.WINDOWING_MODE_PINNED;
 import static android.app.WindowConfiguration.WINDOWING_MODE_UNDEFINED;
 import static android.util.RotationUtils.deltaRotation;
+import static android.view.WindowManager.TRANSIT_CHANGE;
 import static android.view.WindowManager.TRANSIT_OPEN;
 import static android.view.WindowManager.TRANSIT_PIP;
 import static android.window.TransitionInfo.FLAG_IS_WALLPAPER;
@@ -154,6 +155,25 @@ public class PipTransition extends PipTransitionController {
         // We only support TRANSIT_PIP type (from RootWindowContainer) or TRANSIT_OPEN (from apps
         // that enter PiP instantly on opening, mostly from CTS/Flicker tests)
         if (info.getType() != TRANSIT_PIP && info.getType() != TRANSIT_OPEN) {
+            // In case the PIP window is part of rotation transition, reset the bounds and rounded
+            // corner.
+            for (int i = info.getChanges().size() - 1; i >= 0; --i) {
+                final TransitionInfo.Change change = info.getChanges().get(i);
+                if (change.getMode() == TRANSIT_CHANGE && change.getTaskInfo() != null
+                        && change.getTaskInfo().configuration.windowConfiguration.getWindowingMode()
+                        == WINDOWING_MODE_PINNED) {
+                    final SurfaceControl leash = change.getLeash();
+                    final Rect destBounds = mPipBoundsState.getBounds();
+                    final boolean isInPip = mPipTransitionState.isInPip();
+                    mSurfaceTransactionHelper
+                            .crop(startTransaction, leash, destBounds)
+                            .round(startTransaction, leash, isInPip);
+                    mSurfaceTransactionHelper
+                            .crop(finishTransaction, leash, destBounds)
+                            .round(finishTransaction, leash, isInPip);
+                    break;
+                }
+            }
             return false;
         }
 
diff --git a/libs/WindowManager/Shell/src/com/android/wm/shell/transition/DefaultTransitionHandler.java b/libs/WindowManager/Shell/src/com/android/wm/shell/transition/DefaultTransitionHandler.java
index 0c5ec6e465cc9..072b9252254eb 100644
--- a/libs/WindowManager/Shell/src/com/android/wm/shell/transition/DefaultTransitionHandler.java
+++ b/libs/WindowManager/Shell/src/com/android/wm/shell/transition/DefaultTransitionHandler.java
@@ -24,6 +24,7 @@ import static android.app.ActivityOptions.ANIM_OPEN_CROSS_PROFILE_APPS;
 import static android.app.ActivityOptions.ANIM_SCALE_UP;
 import static android.app.ActivityOptions.ANIM_THUMBNAIL_SCALE_DOWN;
 import static android.app.ActivityOptions.ANIM_THUMBNAIL_SCALE_UP;
+import static android.app.WindowConfiguration.WINDOWING_MODE_PINNED;
 import static android.view.WindowManager.LayoutParams.ROTATION_ANIMATION_JUMPCUT;
 import static android.view.WindowManager.LayoutParams.ROTATION_ANIMATION_ROTATE;
 import static android.view.WindowManager.LayoutParams.ROTATION_ANIMATION_SEAMLESS;
@@ -357,6 +358,12 @@ public class DefaultTransitionHandler implements Transitions.TransitionHandler {
                     continue;
                 }
 
+                // There is no default animation for Pip window in rotation transition, and the
+                // PipTransition will update the surface of its own window at start/finish.
+                if (isTask && change.getTaskInfo().configuration.windowConfiguration
+                        .getWindowingMode() == WINDOWING_MODE_PINNED) {
+                    continue;
+                }
                 // No default animation for this, so just update bounds/position.
                 startTransaction.setPosition(change.getLeash(),
                         change.getEndAbsBounds().left - info.getRootOffset().x,
diff --git a/libs/WindowManager/Shell/tests/flicker/src/com/android/wm/shell/flicker/pip/PipRotationTest.kt b/libs/WindowManager/Shell/tests/flicker/src/com/android/wm/shell/flicker/pip/PipRotationTest.kt
index 5d102697404e6..b2b50ade78a9e 100644
--- a/libs/WindowManager/Shell/tests/flicker/src/com/android/wm/shell/flicker/pip/PipRotationTest.kt
+++ b/libs/WindowManager/Shell/tests/flicker/src/com/android/wm/shell/flicker/pip/PipRotationTest.kt
@@ -27,12 +27,10 @@ import com.android.server.wm.flicker.annotation.Group4
 import com.android.server.wm.flicker.dsl.FlickerBuilder
 import com.android.server.wm.flicker.entireScreenCovered
 import com.android.server.wm.flicker.helpers.WindowUtils
-import com.android.server.wm.flicker.helpers.isShellTransitionsEnabled
 import com.android.server.wm.flicker.helpers.setRotation
 import com.android.server.wm.flicker.navBarLayerRotatesAndScales
 import com.android.server.wm.flicker.statusBarLayerRotatesScales
 import com.android.wm.shell.flicker.helpers.FixedAppHelper
-import org.junit.Assume.assumeFalse
 import org.junit.FixMethodOrder
 import org.junit.Test
 import org.junit.runner.RunWith
@@ -121,8 +119,6 @@ class PipRotationTest(testSpec: FlickerTestParameter) : PipTransition(testSpec)
     @Presubmit
     @Test
     fun appLayerRotates_EndingBounds() {
-        // This CUJ don't work in shell transitions because of b/204570898 b/204562589 b/206753786
-        assumeFalse(isShellTransitionsEnabled)
         testSpec.assertLayersEnd {
             visibleRegion(fixedApp.component).coversExactly(screenBoundsEnd)
         }